If You Want to Know the Present Value of $10,000

question 15

Multiple Choice

If you want to know the present value of $10,000 received in one year,and the interest rate is 4 percent,what formula can you use?

• A)Present value equals $10,000 times 0.04.
• B)Present value equals $10,000 divided by 1.04
• C)Present value equals 1.04 divided by $10,000.
• D)Present value equals $10,000 times 1.04.

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Definitions:

Solve

The process of finding the value(s) that satisfy an equation, inequality, or system of equations.

Solve

To solve an equation means to find all possible values of the variable that make the equation true.

Expression

A combination of symbols that represent a quantity or formula, which can include numbers, variables, and operation symbols.

Solve

To find the value(s) of variable(s) that satisfy an equation, inequality, system of equations, or other mathematical conditions.